Kevin Murphy, Leader Correspondent
Water rates for Gresham Municipal Utility residential customers will increase by 26 percent or, approximately $9.60 per month, under an order the Wisconsin Public Service Commission issued Tuesday.
Residential customers currently paying $36.39 monthly in volume charges for 3,000 gallons of water will pay $45.99 for the same amount when the new rates take effect April 15.
Bills reflecting the new rates will be mailed at the end of April, said Grace Schwefel, utility finance supervisor.
The order also increased the monthly meter charge for most residents by $4 to $14.30 from $10.07.
Rates for the utility’s commercial, industrial and public entity customers also will increase by 26 to 29 percent.
The first rate hike since a 40 percent jump in 2008, the increase boosts utility income by $42,393 annually to an estimated $198,447. After estimated 2014 expenses of $154,401, the utility should finish the year with a $44,046 net income and a 6.25 percent rate of return on the $707,740 net value of its infrastructure investment, according to the PSC analysis.
Without the rate increase, the PSC projected the utility finishing 2014 with a $1,653 net operating income and a .023 percent rate of return.
The utility has posted income deficits in each of the past four years. The deficit topped out at $42,526 in 2010 but has steadily decreased, reaching $12,198 last year, according to PSC analysis.
The utility has decreased its operating and maintenance expenses in each of the past four years. Those expenses totaled $152,891 in 2001 and are estimated to fall to $101,900 this year, according to the PSC.
Less spending on salaries and wages have led the decrease in expenses. Total administrative and general labor costs fell from $55,146 in 2010 to an estimated $33,500 this year.
Labor costs were reduced when two employees left the utility and were replaced by one worker, Schwefel said.
Repair expenses have also decreased in the past few years.
Spending on fuel, chemicals and outside services have increased since 2010, according to the PSC analysis.
A resident, Laura Potts, opposed the rate increase in a March 16 email to the PSC stating that her monthly electric, sewer and water bill from the village had climbed over $200 while area wages remain stagnant.
A meter reader 15 years ago, Potts wrote that she knows utility employees can be more productive.
Calls to utility administrator Art Bahr were not returned before deadline.